Shiba Inu (SHIB), a prominent meme cryptocurrency, witnessed a significant drop in today's market, descending to $0.0000266,a 6.12% decrease. This movement highlights a turbulent session, aligning with the broader, bearish crypto market trends.
The day started with SHIB trading at about $0.00002924 but it quickly tumbled, establishing a new possible support level at $0.0000266 after a period of volatility and partial recovery attempts. This price level is critical as it may represent a new support zone if SHIB stabilizes around this range.
From a technical standpoint, Shiba Inu's chart indicates a breach through earlier support levels, which are now acting as resistance points. The immediate significant resistance is observed at $0.0000280. Overcoming this hurdle is essential for SHIB to potentially initiate a recovery phase. The Relative Strength Index (RSI) nearing 50 suggests that SHIB could fall towards 30, the oversold territory, which might attract buyers believing the asset is undervalued at these levels.
Shiba Inu price analysis shows a sharp decline on the 2-hour chart, where SHIB has broken below its recent upward trendline, indicating a potential reversal or correction phase. The current price is testing the exponential moving averages (EMA) at the 50 and 100 levels, with the 50-EMA at approximately $0.00002632 and the 100-EMA at $0.00002572.
A sustained break below these EMAs could confirm a bearish trend, pushing the price towards the next support level at $0.00002475. The Williams %R indicator, deeply entrenched in oversold territory (currently at -94.64), suggests that the market may be overst
Further technical analysis of Shiba Inu’s 2-hour trading chart highlights that the price has recently experienced a significant peak, followed by a sharp pullback. The immediate resistance is identified at $0.00002714, where the downward trendline from the recent highs intersects.
If SHIB manages to reclaim this level, it might attempt to test higher resistance at $0.00002942. However, the convergence of the EMA lines and the declining volume during the pullback raise concerns about the sustainability of any potential upward movement.
The trading volume for SHIB stands impressively at $1,661,232,861 over the last 24 hours. High volume amidst a price decline typically points to strong selling pressure. Yet, the elevated interest in SHIB, demonstrated by an 85% increase in open interest, indicates a significant amount of capital flowing into SHIB derivatives. This could imply that investors are positioning themselves for potential upward movement, based on market anticipation or speculative trading strategies.
Furthermore, a market analyst known as Cold Blooded Shiller has commented on the unusual strength of SHIB in the current market conditions, suggesting that the coin is well-positioned for a potential bullish reversal on higher time frames. He notes that compared to its peers, notably Dogecoin, SHIB has demonstrated resilience and strength, which might suggest an impending positive shift in its market dynamics.